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Series 65 - NASAA Uniform Investment Advisor Law Exam fully solved rated A+
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Series 65 - NASAA Uniform Investment Advisor Law Exam fully solved rated A+
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Series 65 - NASAA Uniform InvestmentAdvisor Law Exam
An OTC market maker would justify the amount of its markup based on all of the following, EXCEPT:
-Current price
-Dollar value of the trade
-The market maker's cost
-Availability of the securities - correct answer ✔✔The market maker's cost
Explanation:
The amount of markup should be based on the current market price of the security, not the market
maker's cost. (74673)
All of the following would be considered an investment adviser representative under the Uniform
Securities Act, EXCEPT a(n):
-Portfolio manager for Winners Asset Management Co
-Broker-dealer offering wrap accounts to its clients
-A partner of Winners Asset Management Co. who supervises investment adviser reps
-An accountant who works for Winners Asset Management Co., who provides financial plans for clients -
correct answer ✔✔Broker-dealer offering wrap accounts to its clients
Explanation:
, An investment adviser representative is any person who is associated with an investment adviser and
makes recommendations, manages accounts, provides advice, solicits advisory services, negotiates the
sale of advisory services, or supervises persons engaged in these activities. A broker-dealer offering wrap
accounts would be considered an investment adviser, not an investment adviser representative. (62453)
A 52-year-old client invested $100,000 in a nonqualified annuity that is currently worth $200,000. She
decides to liquidate the annuity and take a distribution. The distribution will be:
-Fully taxable as ordinary income and subject to a penalty
-Fully taxable at long-term capital gains rates
-Partially taxable at ordinary rates and subject to a penalty
-Considered a tax-free return of principal and not subject to taxation - correct answer ✔✔Partially
taxable at ordinary rates and subject to a penalty
Explanation:
Anyone may purchase a nonqualified annuity and make nondeductible contributions (after-tax dollars).
Withdrawals from a nonqualified annuity are taxable as ordinary income (not capital gains) in excess of
the client's cost basis (original investment). The initial investment is considered return of principal and
not subject to taxes. Since the client is less than age 59 1/2, she is also required to pay a 10% tax penalty.
(62451)
To help a friend who needs to raise capital to start a new business, an agent markets his friend's limited
partnership interests to some of his brokerage clients. The agent collects a commission from the sale of
the interests, but has not told his broker-dealer about the sales. The agent's actions are best described
as:
-Unauthorized trading in customers' accounts
-Churning in customers' accounts
-Selling unregistered securities
-Selling away - correct answer ✔✔Selling away
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